Nomura to purchase 41% stake in American Century

First Published 22nd December 2015

Nomura will acquire the 41 percent stake from CIBC for approximately $1 billion.

Koji Nagai, Nomura

"The deal represents Nomura's continuing ambition to put clients at the center of everything it does while connecting markets east and west."

New York - Asian
investment bank Nomura has entered into a definitive agreement
with American Century Investments and CIBC to acquire a
non-controlling 41 percent economic interest in American
Century.

Under the terms of the definitive agreement,
Nomura, through a wholly owned subsidiary, will acquire the 41
percent stake from CIBC for approximately $1 billion. The
transaction is expected to close in the first half of 2016
pending approval by regulatory authorities.

"Nomura is honored to enter into a long-term
relationship with American Century - a proven and successful
investment management company, and an organization which has
stated its commitment to making a difference in the community
through its Profits With a Purpose philosophy," said Koji Nagai,
Nomura Group CEO. "Nomura's relationship with American Century
will bring value to both firms and the deal represents Nomura's
continuing ambition to put clients at the center of everything it
does while connecting markets east and west," he added.

"Nomura respects the value of American Century's
corporate philosophy and we believe that we are entering into a
relationship with an outstanding company on the strength of our
similar cultures, a shared investment outlook and a common set of
values," said Kunio Watanabe, CEO of Nomura Asset
Management.

"The strength of Nomura's asset management
business in Asia complements American Century's own success in
North America," said Jonathan Thomas, American Century President
and Chief Executive Officer. "By leveraging our new relationship
with Nomura, we'll be able to build upon the success of our
global business and broaden the array of clients who can access
our investment management capabilities," said Thomas. "As we
welcome Nomura as a strategic investor, I want to thank CIBC for
what proved to be a mutually beneficial relationship over the
past four years. Going forward, CIBC remains one of our largest
and most-valued clients."

The deal is intended to allow Nomura to access
and leverage American Century's asset management capabilities to
develop investment solutions for its retail and institutional
clients internationally. It also helps the firm further diversify
its business interests, giving Nomura an expanded investment
footprint in the U.S. investment management market.

For American Century, the transaction provides
the Kansas City-based firm with a strategic investor whose
prominence in Japan, Asia and other parts of world is intended to
help support its growth initiative to broaden non-U.S.
distribution of the firm's products and services. Beyond the
minority investment, Nomura and American Century Investments have
agreed to strategically explore ways to enhance their asset
management businesses globally.

Upon completion of the transaction, Nomura will
name two representatives to American Century's 11-person board of
directors. Nomura will also have a 10.1 percent voting
interest.